The belt-tightening also helped Alamos' Q2 adjusted earnings per share of US$0.07 beat consensus expectations of $0.06.
"We achieved several key short- and long-term objectives in the second quarter," Alamos' president and CEO John A. McCluskey said.
"Production was in-line with guidance and costs well below quarterly guidance reflecting solid performances at our Canadian operations and a strong start from La Yanqui Grande which achieved initial production ahead of schedule," he said.
Alamos brought down its company-wide all-in sustaining costs to $1,170/oz in Q2, from $1,360/oz in Q1.
National Bank of Canada Financial Markets said the Q2 AISC beat their estimate of C$1,337/oz.
"Alamos was able to keep its costs impressively low," NBF said.
"As a result, Alamos has maintained its 2022 guidance and three-year outlook on all fronts (production and costs), which is impressive in our view given the inflationary pressures facing the mining sector.
Alamos' 2022, 2023, and 2024 gold production and AISC guidance ranges stand at 440,000-480,000oz, 460,000-500,000oz, and 460,000-500,000oz, and $1,190-$1,240/oz, $1,075-$1,175/oz, and $950,000-$1,050/oz, respectively.
"Overall, with the Adj EPS beat and reiteration of the entire 2022 guidance, we expect Alamos will outperform peers in tomorrow's trading," NBF said.
Before releasing the Q2 results, Alamos' share price closed the session at C$9.08 (US$9.08).
NBF has a target price for the company of C$12.50.
Alamos' production of 104,000oz Au in Q2 was in line with the consensus estimate and came in marginally below NBF's forecast of 106,000oz.
"La Yaqui Grande will be a key contributor to stronger operational and financial results over the shorter term, and as outlined in our Phase 3+ Expansion Study, Island Gold will be the driver of higher production, lower costs and significantly stronger free cash flow generation over the long term," McCluskey said.
Alamos currently operates three mines—Young Davidson and Island Gold in Canada, and Mulatos in Mexico.
"The Phase 2+ expansion will transform Island Gold into one of the largest, lowest cost and most profitable gold mines in Canada," McCluskey said.
Island Gold produced 37,300oz in Q2 with an AISC of $848/oz.
